For profit universities have been a target of state and federal investigations for years.  I have written about this topic since 2012.  It should be noted that not all for profit colleges are scams, but there are a large number of for profit colleges, sometimes referred to as “diploma mills” that at times offer credit for your “life experience” and lure students in with promises of a helpful degree, but the students end up with a worthless degree and an empty wallet.  Sometimes the names of these scamming colleges and universities are confusingly similar to legitimate colleges.  For instance, Columbia State University is a diploma mill while Columbia University is an eminent Ivy League school.

In 2019, the University of Phoenix settled charges brought by the Federal Trade Commission (FTC) that it used deceptive advertising to attract students.  These ads falsely implied that the University of Phoenix worked with companies such as AT&T, Yahoo and Microsoft to create job opportunities for students and to shape its programs for the jobs. Pursuant to the settlement,  the University of Phoenix paid 50 million dollars to the FTC and in 2021 the FTC sent refunds to 147,500 former University of Phoenix students.

Now as a further part of the FTC’s action against the University of Phoenix, the U.S. Department of Education is forgiving approximately 37 million dollars of federal student loans to victims of the school’s deceptive practices outlined in the 2019 case.  People interested in submitting a claim for loan forgiveness should to to the Department of Education’s Borrower Defense Loan Discharge page using this link https://studentaid.gov/manage-loans/forgiveness-cancellation/borrower-defense

TIP

If you are considering attending a for profit school, first check it out with the United States Department of Education’s website at www.ope.ed.gov/accreditation to make sure it is an accredited institution.
You also should investigate whether a local college, university or community college would be more cost effective for you.  For profit colleges and universities are often more expensive than these other alternatives without offering any distinct advantages.  Also, check out the graduation rates of any for profit college you are considering and finally, investigate the job prospects in your field of study.  Don’t just take the word of the college.

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